10 things you need to know today

Japan's economy shrank. The
Japanese economy contracted 0.4% versus last quarter, making
for the first decline since Q3 2014. An 0.8% drop in private
consumption weighed heavily on economic growth as the component
makes up approximately 60% of economic output. Despite the weak
reading, the number outpaced the 0.5% QoQ drop that was expected.
Japan's yen is weaker by 0.2% at 124.55.

The IMF wants a Greek haircut. International
Monetary Fund managing director Christine
Lagarde thinks Greece's debt load is unsustainable and that a
debt haircut is necessary. "I remain firmly of the view that
Greece's debt has become unsustainable and that Greece cannot
restore debt sustainability solely through actions on its own,"
Lagarde said in a statement. The bailout has been approved by
Greece's parliament, but must still clear eurozone parliaments.
Greece's two-year yield is lower by 229 basis points at 10.10%.

Crude oil is near 6-year lows. West Texas
Intermediate crude oil
broke to a low of $41.64 in overnight trade. A recent bid,
however, has lifted the energy component back above $42 a barrel.
Currently, action holds down 1% at $42.09 a barrel. "The
oversupply story remains well intact, which fuels the bearish
sentiment," Carsten Fritsch, a senior oil analyst at Commerzbank,
told Reuters.

Apple is working on a self-driving car.
Documents obtained by The Guardian show
Apple is working on a self-driving car and is further along than
many expected. The Guardian says the company is looking for
test centers in the San Francisco Bay Area for the so-called
Project Titan. Apple is believed to be interested in a facility
on the old Concord naval weapons station, which has been used by
both Mercedes-Benz and Honda to test self-driving technologies.

AT&T helped the NSA spy. The
telecommunications provider
aided the National Security Agency in conducting surveillance on
US internet traffic, according to The New York Times. The
report says the surveillance was conducted on at least 17
AT&T hubs from 2003 to 2013 and was uncovered by documents
provided by former NSA contractor Edward Snowden. The New York
Times also reports that AT&T gave the NSA more than 1.1
billion daily phone records each day starting in 2011.

Cargill is entering the salmon business. The
world's largest grain trader is paying the private-equity firms
Altor Equity Partners and Bain Capital Partners a total of €1.35
billion ($1.5 billion) for the Norway-based salmon-feed supplier
EWOS, according to Bloomberg. The buyout is a "strategic
investment in our long-term growth and evidence of our commitment
to the growing aquaculture industry," Cargill CEO David MacLennan
said in a statement.

Stock markets around the world are mostly
higher. China's Shanghai Composite (+0.7%) paced the
gains in Asia, and France's CAC (+0.4%) leads the way higher in
Europe. S&P 500 futures are off 1.75 points at 2,087.50.

Economic data is moderate. Empire Manufacturing
is due out at 8:30 a.m. ET before the NAHB Housing Market Index
is released at 10 a.m. ET and Net Long-Term TIC Flows crosses the
wires at 4 p.m. ET. The US 10-year yield is down 3 basis points
at 2.17%.

Earnings reports slow. Estee Lauder reports
ahead of the open while Agilent, MasTec, and Urban Outfitters
will release their quarterly results following the closing bell.